AN international
money-laundering ring run by New York
Hasidim washed millions of dollars in
cocaine proceeds for the Colombian
cartels, prosecutors disclosed
yesterday.

The group laundered at least $1.7
million for the druglords, holding secret
meetings with the Colombians in Miami and
midtown Manhattan, according to papers
filed by Manhattan U.S. Attorney James
Comey.

The suspects were brazen - up to
$500,000 would be laundered at a time.

One of the suspects, Avraham
Zaltzman, allegedly bragged that he
"could pick up money anywhere and wire it
anywhere," according to FBI affidavits
accompanying the arrests.

Zaltzman was so brazen that he
allegedly picked up drug money himself in
Madrid in April and flew to London, where
he was detained by British Customs. They
found $460,000 concealed in his vest.

Bornstein runs an interior design
business there, and Zaltzman is a
part-time printer who spends most of his
time in Israel, officials said.

A third man who was believed to be the
ringleader, Akiva Apter, remained a
fugitive. Three others were named as
unindicted co-conspirators.

The case came together in April after
agents busted one of the co-conspirators -
a man who speaks Yiddish and Spanish - and
got him to cooperate.

The informant agreed to secretly record
hundreds of conversations with his
partners. He told the agents that between
early 2001 and the day they caught him, he
had delivered $1.7 million in drug
proceeds.

The informer began recording his calls,
more than 400 in all. He also recounted
his involvement in the group, starting
with one of his first meetings in
Manhattan's Diamond District early last
year, an affidavit filed by FBI Agent
Michael McGarrity states.

The informant said he had traveled to
Miami, where he learned the group was
involved in delivering cash from drug
sales in the United States back to the
kingpins in Colombia.

Cash
flow

Seven times, the informer helped move
the cash through businesses and bank
accounts, in amounts up to $500,000, he
told the FBI. He recorded a June 13 talk
with Bornstein in which Bornstein
instructed him on how to deposit cash in
amounts of less than $10,000 to avoid
scrutiny, the affidavit states.

At the same time, the bureau began
bugging conversations of other
conspirators. In one April 21 talk, the
informer discussed a shipment of cocaine
with one of the unnamed
co-conspirators.

Yesterday, Bornstein appeared before
U.S. Magistrate Douglas Eaton and
was released on $500,000 bond to be
secured by $200,000 in cash.
About a half-dozen
Hasidim showed up for the
arraignment.

His lawyer, Paul Schectman,
declined comment, as did prosecutors.

Zaltzman was jailed pending a bail
hearing next week. He requested a prayer
book and prayer shawl while behind
bars.

At least two other ring members have
pleaded guilty to money laundering and are
cooperating in the probe in the hopes of
winning lighter jail time.